Step 4.8

Are there annual and lifetime caps?

Annual and Lifetime Caps

There are annual and lifetime caps that apply to the income-tested care fee for Home Care Packages.  Once these caps are reached you cannot be asked to pay any more.  The government will pay these fees once you reach these caps. 

There are two annual caps that may apply in-home care (applied at a daily rate):

  • If your income is equivalent to a part pensioner ($58,500.00 and below) your fee will be capped at $6,543.66 a year or $17.97 per day (as of September 2023)


  • If your income is equivalent to a self-funded retiree (more than $58,500) your fee will be capped at $13,087.39 a year or $35.95 per day (as of September 2023)

You can review the full schedule of Fees and Charges of Home Care as put out by the Department of Health here

The maximum income-tested care fee you may be asked to pay over your lifetime is $78,524.69 (September 2023).  Any means-tested care fees you pay in residential care will also be counted towards the lifetime cap.

It is important to be aware that these annual and lifetime caps cross over to aged care costs such that you cannot be asked to pay a means-tested fee in an aged care home if you have already hit the limit.

Jill Donaldson

agedcare101 Physiotherapist

(Separate conditions apply if you receive a pension which is not means-tested, such as a blind pension, a war widow pension or a widower Pension. You will have to submit an Aged Care Fees Income Assessment (SA456) form which you can find here.)

In Summary:

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A special thanks to our contributors

Jill Donaldson


Jill has been practicing as a clinical physiotherapist for 30 years. For the last 13 years she has worked solely in the Aged Care sector in more than 50 metropolitan and regional facilities. Jill has also toured care facilities in the US and Africa and is a passionate advocate for both the residents in aged care and the staff who care for them. She researches and writes for DCM Media.

Chris Baynes

DCM Media, agedcare101

Chris has been a journalist and publisher in the retirement village and aged care sectors for 11 years. He has visited over 250 retirement villages and 50 aged care facilities both within Australia and internationally. Chris is a regular speaker at industry conferences plus is a frequent radio commentator.

Annie Donaldson

Nurse and Carer

Annie has a long career in both nursing and the media. She has planned and co-ordinated the medical support from both international TV productions and major stadium events. In recent years she has been a primary family carer plus involved in structured carer support.